The American states with the lowest 30-year mortgage refinance rates on a recent Thursday were California, New York, Florida, Washington, Colorado, Connecticut, Louisiana, and Mississippi, with refi averages between 6.75% and 6.92%. Whereas, Washington, D.C., Hawaii, Massachusetts, Georgia, Indiana, and Nevada reported the highest refinance rates, with 30-year averages ranging from 7.08% to 7.13%.
There is no universal rate for mortgage refinance; rates depend on a plethora of factors such as the state where the loan originated, the regional lenders, state-specific credit score averages, standard loan sizes, and local regulations. Each lender's risk management strategies also play a part in determining mortgage refinance rates. This wide variability among lenders underscores the importance of shopping around for the best mortgage options and frequently comparing rates.
The rates published in most forums, including this one, do not directly match the so-called “teaser rates” advertised online. They are named as such because they are designed to attract borrowers by advertising the best-case scenario rates based on optimal borrower profiles. The rate a borrower ultimately secures is contingent on their unique circumstances like credit score, income, etc.
On that Thursday, the national average for 30-year refinance rates dropped 12 basis points to 6.99%, which is markedly higher than the 19-month low of 6.01% in mid-September.
Determining mortgage rates involves a complex interplay of macroeconomic and industry-specific factors. Consequently, attributing rate changes to particular causes is difficult. However, large-scale economic developments in 2021 and 2022, such as the Federal Reserve's decision to taper bond purchases and raise the federal funds rate due to high inflation, have triggered considerable fluctuations in mortgage rates. Further, anticipated rate cuts in 2024 and 2025 are expected to influence the trend.
The national and state averages cited are provided by the Zillow Mortgage API, thereby reflecting rates that borrowers with a decent credit score and a 20% down payment should expect to receive. As a word of caution, these may vary from the advertised 'teaser rates'.